Please let me know which accounts need to be credited and debited and the amounts,
What is the adjustment journal entry that needs to be made?
The company uses the first in, first out method on a periodic basis. Physical counts are conducted at the end of the year to determine the quantity and value of merchandise inventory on hand and cost of goods sold. As the result of a physical count, year-end merchandise inventory was determined to be $546,300.
Unadjusted trial balance Dec 31, 2014.
Purchases: DR.$853,000.00
Merchandise Inventory: DR. $449,300.00
COGS: $0